Tax efficient gifts to staff

❓️ Can I treat my employees (directors included) without incurring a tax bill?

👍 Y E S !

This message is for YOU 🫵 and just in time for Christmas! 🎅🎄

HMRC say that you don’t have to pay tax on a benefit for your employee if all of the following apply:

🔹️ it costs you £50 or less to provide (per person, inclusive of VAT)

🔹️ it isn’t cash or a cash voucher

🔹️ it isn’t a reward for their work or performance

🔹️ it isn’t in the terms of their contract

This is known as a ‘trivial benefit’. You don’t need to pay tax or National Insurance on it.

So if you fancy treating your employees to some chocolates, or flowers, or gift cards etc...now you know not to spend more than £50 per person and it may qualify for tax relief!

If you’re not sure whether a benefit counts as a trivial benefit, you know who to call 😉

🎄 MERRY CHRISTMAS 🎄

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* Trivial benefits should not be given so regularly that they could be considered as forming part of an employees pay package. We recommend no more than 6 of these trivial benefits per employee per 12months (directors also should not receive more than 6 of these trivial benefits in any 12month period)

** Please note that there are tax implications on any benefits that don’t meet all the aforementioned criteria.

***Correct at time of publishing, but you should always speak to your advisor before taking action to ensure the expense qualifies